Channel Checkride Consulting · Tools

Retail Margin Waterfall

Start at the shelf price and walk down to the dollars you keep per unit, after retailer margin, allowances, freight and a chargeback reserve. Then see the shelf price you need to hit your target.

Your numbers

Example inputs. Replace with yours.

Shelf price (MSRP)

Retailer margin, % of shelf price

Landed product cost per unit

Deductions, % of wholesale price

Markdown or promo

Defective allowance

Co op or MDF

Early pay discount

Broker or rep commission

Chargeback reserve

Set the chargeback reserve from your own last 90 days of deductions, not a rule of thumb.

Per unit and per order

Freight to retailer, per unit

Units on the PO

Target contribution, % of net revenue

Where each shelf dollar goes

Bars show dollars per unit. Green is money you keep or a running total. Copper is money that leaves.

Whole order	Amount

Want this run on your real terms and deductions? The Retail Readiness Review turns your numbers into a margin waterfall, cash cycle, compliance checklist and ranked fix list. Request a Retail Readiness Review

Illustrative model. Retailer margin, allowances and fees vary by retailer, category and agreement. Check your current vendor agreement, routing guide and fee schedule before relying on any output. Chargebacks here are a percentage reserve; real exposure is often event based.